Economics Worksheet With Answers printable pdf download

Economics Worksheet With Answers

Problems:

Table 1:

Labor Hours needed to make one

Amount produced in 90 hours:

Quilt

Dress

Quilts

Dresses

Helen

1.8

Carolyn

1. Refer to Table 1. For Carolyn, the opportunity cost of 1 quilt is

a. 0.5 dresses.

b. 1 dress.

c. 2 dresses.

d. 3 dresses.

2. Refer to Table 1. For Carolyn, the opportunity cost of 1 dress is

a. 5 quilts.

b. 4 quilts.

c. 1/2 quilt.

d. 1/10 quilt.

3. Refer to Table 1. Helen has an absolute advantage in

a. dresses and Carolyn has an absolute advantage in quilts.

b. quilts and Carolyn has a comparative advantage in dresses.

c. both goods and Carolyn has a comparative advantage in quilts.

d. neither good and Carolyn has a comparative advantage in dresses.

4. Refer to Table 1. We could use the information in the table to draw a production

possibilities frontier for Helen and a second production possibilities frontier for

Carolyn. If we were to do this, measuring quilts along the horizontal axis, then

a. the slope of Helen’s production possibilities frontier would be -0.2 and the slope of

Carolyn’s production possibilities frontier would be -0.5.

b. the slope of Helen’s production possibilities frontier would be -5 and the slope of

Carolyn’s production possibilities frontier would be -2.

c. the slope of Helen’s production possibilities frontier would be 0.2 and the slope of

Carolyn’s production possibilities frontier would be 0.5.

d. the slope of Helen’s production possibilities frontier would be 5 and the slope of

Carolyn’s production possibilities frontier would be 2.

Economics Worksheet With Answers